The distribution of ZWAP tokens began on 3 February 2021, 16:00 UTC+8 and its distribution mechanism was outlined with 2 key stages to users who benefit from the protocol.
The total supply of ZWAP tokens is 1,000,000.
This stage distributed tokens to early users, testers, and builders who tried and tested the protocol prior to 18 January 2021, 18:00 UTC+8. To reward them for their contribution, these users were eligible to retroactively claim ZWAP tokens from 5% of the total token supply. Of these 50,000 ZWAP tokens, 15% of the tokens were allocated to developers as a retroactive reward and distributed in a monthly token release over 12 months. The remaining 85% were split between traders and liquidity providers and could be claimed when the token was released on 3 February 2021.
Weighted by volume traded in ZIL
Weighted by time and liquidity provided in ZIL
Since 3 February 2021, 16:00 UTC+8, the remaining 95% of the $ZWAP token supply has continuously been distributed to key stakeholders of the protocol — liquidity providers and developers. Over a period of 152 weeks. 6,250 ZWAP tokens will be released weekly with the following allocation:
- Developers of the protocol (15%): this fund is committed towards the future development of the ZilSwap ecosystem including but not limited to development and partnerships
- Liquidity providers (85%): according to approved pool weight, and time-weighted liquidity in ZIL. This means that users will receive ZWAP rewards proportional to the pool weight and the duration that they have contributed liquidity for.
More pools can be allocated rewards in the future through a governance vote.
The following section is for illustrative purposes only.
To better understand how rewards are distributed, we will use a scenario with the following three pools and weights:
- 1.XSGD/ZIL: 20% (2x weightage)
- 2.gZIL/ZIL: 30% (3x weightage)
- 3.ZWAP/ZIL: 50% (5x weightage)
Let’s assume the total rewards distributed in the first week is $1,000. The three pools will receive $200 (20% x $1000), $300 (30% x $1000) and $500 (50% x $1000) respectively. Rewards for each pool will then be distributed to liquidity providers pro-rata by their share of contribution to the pools and how long they have provided liquidity for.